The London Metal Exchange has been forced to delay the launch of its new LMEmini contracts from November 20 until December 4 after the withdrawal of an upgraded version of its electronic trading software, LME Select Release 5, last week.

The new system crashed on two trading days and, after consultation with its suppliers, the exchange decided to deliver the launch of the new contracts on its existing platform, Select 4.

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Martin Abbott, LME chief executive, said: âWe are very committed to the successful launch of the LMEminis and are focused on ensuring that the launch of these new contracts meets the very real market demand that exists.â

The new electronically traded contracts in copper, aluminium and zinc are based on the full-sized parent contracts and aimed primarily at financial investors as they are cash settled and avoid the need for physical delivery of metal.

The delay is potentially embarrassing for the LME as the launch of the LMEminis was the first attempt by the worldâs premier non-ferrous metals market to extend the appeal of its traditional base metals contracts to financial investors. Several brokers had started marketing LMEminis to clients in Asia.

However, the exchange reiterated that there had been a very positive response to the proposed mini contracts from a well- attended roadshow in London in late October and that there had been no negative reaction from any brokers.

The new contracts will pit the LME against the New York Mercantile Exchange, which plans to launch several so-called e-minis using the Globex electronic trading platform, owned by the Chicago Mercantile Exchange and with a greater market reach.